WORLD OIL PRICES (June 23-27, 2014 trading days)

Crude prices seesawed over the week, with Dubai hovering around US$110 a barrel as traders took profit but kept a close monitor on the conflict in Iraq.It may have to be noted that oil prices rose sharply by about US$3 to US$4 a barrel a week ago after violence in Iraq spiked fears of supply disruption.

However, despite the ongoing violence in northern part of Iraq, supplies reportedly remain largely unaffected. Exports from Iraq's southern terminals, where most of the nation's oil is concentrated, averaged 2.53 million barrels per day (bpd) as of 21 June 2014, reports said.

In Asia, Platts noted that gasoline remained on a tight supply-demand balance in the prompt market. Indonesia, the region's largest gasoline buyer, was in the market to buy one or two MR-sized cargoes of 88 RON gasoline for July to meet peak demand during the Muslim holy month of Ramadan. Further, demand for high-octane 95 RON gasoline from Malaysia, Thailand and Vietnam added to the tight supply-demand balance in the prompt market. Sentiment in the Singapore market was further boosted by news of an outage at Taiwan CPC's 300,000 b/d Talin refinery, and emergence of demand from India at a time when Singapore's light distillate stockpile is at the lowest this year.

On the other hand, persistent soft demand and abundant supply continued to create a weaker Asian gasoil market. Platts noted of high inventory levels as refiners in Asia resumed operations after maintenance, while the arbitrage window to send cargoes to Europe remained firmly shut, trapping cargoes within the region. Gasoil production in Japan reportedly rose by 8.3% from the previous week to 4.93 million barrels the week ended June21. The country exported 1.52 million barrels of gasoil in the week to June 21, up by 44.8% from 1.05 million barrels the previous week.

Overall, week-on-week Dubai crude increased by about US$0.29/bbl. MOPS gasoline and diesel also increased by almost US$1.70 and US$0.60, a barrel, respectively.

FOREX: Week-on-week value of Peso depreciated against the US dollar by P 0.06 to P43.84, from P43.90, in the preceding week.

Other recommended reference sites:
(1) http://www.aip.com.au/pricing (2) http://www.med.govt.nz/ers/oil_pet/prices/prices.html

DOMESTIC OIL PRICES

Effective today, 01 July 2014, most of the oil companies implemented an increase of P0.45/liter for gasoline and P0.10 for diesel.

For LPG, the price rolled-back by P0.10/kg or P1.10/11kg, due to the decrease of the Contract Price (CP) for July by US$1/MT to US$834/MT, from US$835/MT last month.

With the recent price movements, year-to-date total adjustments stands now at a net increase of P1.75/liter for gasoline and a net decrease of P0.90/liter for diesel. LPG has a net decrease of P16.87/kg.

For more information, call the

Department of Energy:
Pricing: 840-2187
LPG: 840-2130
Fuels: 840-5669
SMS: (0915) 4469421
Email: oilmonitor@doe.gov.ph
Website: http://www.doe.gov.ph